Case Study: Wood Recycling Company
The client need
This deal was introduced to us by one of our trust-worthy brokers and was the first that Adam Bamforth, one of our new Business Development Managers, had received from them. The Lincolnshire-based client was a wood recycling company needing funding to finance various equipment, including two wood chippers and a JCB Telehandler. In addition they wanted to create an up-scaled recycling plant, which would increase their production capacity by linking several machines together and installing a range of parts.
The Davenham solution
Various elements were required to complete the set-up which couldn’t be funded individually as one of the wood chippers was manufactured back in 1998, but through research to define age limits for assets, we were still able to add the Davenham seal of approval and acquire the funding over terms that best suited our client and their needs.
However, there was a bit of a fork in the road as it became apparent that the most valuable wood chipper - worth almost £40,000 - was not fully installed and commissioned. So, we had to either put the deal on hold whilst waiting for the installation to be complete or cancel our agreement...
To avoid significant delays and disappointment for all involved, we looked into alternative options for the equipment. We agreed with the client to revisit our valuation of the non-functioning wood chipper and reduce this to account for the increased risk as well as fund a JCB Forklift for them to use instead of the 1998 wood chipper.
This required a repeat visit to the customer site to assess all assets, which was carried out soon after. With a great deal of hard work and tenacity, we were still able to meet the required funding level for the client and turn the agreement around, having cultivated the £45,0000 funds which was paid into their account a few days later, allowing the client to start chipping away at achieving their goals.
This deal was introduced to us by one of our trust-worthy brokers and was the first that Adam Bamforth, one of our new Business Development Managers, had received from them. The Lincolnshire-based client was a wood recycling company needing funding to finance various equipment, including two wood chippers and a JCB Telehandler. In addition they wanted to create an up-scaled recycling plant, which would increase their production capacity by linking several machines together and installing a range of parts.
The Davenham solution
Various elements were required to complete the set-up which couldn’t be funded individually as one of the wood chippers was manufactured back in 1998, but through research to define age limits for assets, we were still able to add the Davenham seal of approval and acquire the funding over terms that best suited our client and their needs.
However, there was a bit of a fork in the road as it became apparent that the most valuable wood chipper - worth almost £40,000 - was not fully installed and commissioned. So, we had to either put the deal on hold whilst waiting for the installation to be complete or cancel our agreement...
To avoid significant delays and disappointment for all involved, we looked into alternative options for the equipment. We agreed with the client to revisit our valuation of the non-functioning wood chipper and reduce this to account for the increased risk as well as fund a JCB Forklift for them to use instead of the 1998 wood chipper.
This required a repeat visit to the customer site to assess all assets, which was carried out soon after. With a great deal of hard work and tenacity, we were still able to meet the required funding level for the client and turn the agreement around, having cultivated the £45,0000 funds which was paid into their account a few days later, allowing the client to start chipping away at achieving their goals.